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Energy Rebound Due to Re-spending: A Growing Concern. WWWforEurope Policy Paper No. 9

Author

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  • Miklós Antal

    (WIFO)

  • Jeroen C.J.M. van den Bergh

    (Universitat Autònoma de Barcelona)

Abstract

Energy conservation is widely accepted as an important strategy to combat climate change. It can, nevertheless, stimulate new energy uses that partly offset the original savings. This is known as rebound. One particular rebound mechanism is re-spending of money savings associated with energy savings on energy intensive goods or services. We calculate the average magnitude of this "re-spending rebound" for different fuels and countries. We find that emerging economies, neglected in past studies, typically have substantially larger rebounds than OECD countries. The effect is generally stronger for gasoline than for natural gas and electricity. Paradoxically, strengthening financial incentives to conserve energy tends to increase rebound. This is expected to gain importance with climate regulation and peak oil. In the last section of the paper, the policy implications of our findings are discussed.

Suggested Citation

  • Miklós Antal & Jeroen C.J.M. van den Bergh, 2014. "Energy Rebound Due to Re-spending: A Growing Concern. WWWforEurope Policy Paper No. 9," WIFO Studies, WIFO, number 47012, March.
    • Handle: RePEc:wfo:wstudy:47012
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    File URL: https://www.wifo.ac.at/wwa/pubid/47012
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    References listed on IDEAS

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    1. Jeroen Bergh, 2011. "Energy Conservation More Effective With Rebound Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(1), pages 43-58, January.
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    3. Sorrell, Steve, 2009. "Jevons' Paradox revisited: The evidence for backfire from improved energy efficiency," Energy Policy, Elsevier, vol. 37(4), pages 1456-1469, April.
    4. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(4), pages 360-394, August.
    5. Webster, Mort & Paltsev, Sergey & Reilly, John, 2008. "Autonomous efficiency improvement or income elasticity of energy demand: Does it matter?," Energy Economics, Elsevier, vol. 30(6), pages 2785-2798, November.
    6. Lin, Boqiang & Jiang, Zhujun, 2012. "Designation and influence of household increasing block electricity tariffs in China," Energy Policy, Elsevier, vol. 42(C), pages 164-173.
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    Cited by:

    1. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791.
    2. Ina Meyer & Mark Sommer, 2014. "Employment Effects of Renewable Energy Supply – A Meta Analysis. WWWforEurope Policy Paper No. 12," WIFO Studies, WIFO, number 47225.
    3. Georg Licht & Bettina Peters & Christian Köhler & Franz Schwiebacher, 2014. "The Potential Contribution of Innovation Systems to Socio-Ecological Transition. WWWforEurope Deliverable No. 4," WIFO Studies, WIFO, number 47502.

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